National
RBI asked to clarify delay in clearing cheques

New Delhi, (PTI): The National Consumer Commission has asked the Reserve Bank of India to clarify its stand regarding the time taken by banks to clear outstation cheques to reduce losses for consumers due to such delays.

The Commission was hearing a petition alleging delay by banks in clearing cheques which caused a loss of over Rs 600 crores to consumers for every single-day.

"The RBI has produced on record a chart indicating that the banks take approximately 14 days for collection of cheques, even few banks take more than 14-days time," the Commission bench comprising Justice M B Shah and member, Rajyalakshmi Rao, said.

The Bench, asking RBI to file an affidavit by October 29, said "during this period the question arises with regard to giving credit to the amount to the person in whose favour the cheque is issued and to reduce or avoid delay in giving such credits what steps could be taken."

Earlier, the RBI furnished a revised cheque collection policies, submitted to it by 35 banks, along with a chart clarifying that local cheques were cleared to the named persons as soon as the debit entry was made.

The RBI, which frames guidelines for all nationalised and private banks, was asked by the apex consumer commission to frame policies to minimise the losses caused to consumers by the banks in clearing local and outstation cheques.

National

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